70440-44045 hrmanager@grameenshakti.co.in



What are the methods of recovery used by the NBFC-MFIs ?

Recovery should normally be made only at a central designated place. Field staff shall be allowed to make recovery at the place of residence or work of the borrower only if borrower fails to appear at central designated place on 2 or more successive occasions

Is there any cap on an individual membership with SHG/JLG and/or number of NBFC-MFIs from whom a SHG/JLG/an individual can borrow?

A borrower can be a member of only one SHG/JLG. He can borrow from NBFC-MFIs as a member of a SHG or a member of a JLG or borrow in his individual capacity. Further, an SHG or JLG or individual cannot borrow from more than 2 NBFC-MFIs.

Is there any prepayment penalty that can be levied by an NBFC-MFI?

NBFC-MFI cannot levy prepayment penalty.

How can a borrower find about the current interest rate being charged by the NBFC-MFI?

RBI has made it mandatory for the NBFC-MFI to prominently display in all its offices and in the literature issued by it and on its website, the effective rate of interest being charged by it.

What a borrower should ensure when he gets a loan card from the NBFC-MFI

  • the effective rate of interest charged;
  • all other terms and conditions attached to the loan;
  • information which adequately identifies the borrower;
  • acknowledgement by the NBFC-MFI of all repayments including installments received and the final discharge
  • All entries in the Loan Card should be in the vernacular language.
  • The interest charged to customer is calculated on a reducing balance basis.
  • NBFC-MFI does not levy penalty on delayed payment

What should a customer keep in mind for the loans extended by an NBFC-MFI?

The NBFC-MFI is required to be fair and transparent in its dealings with the borrowers and No security deposit/ margin/collateral is required to be kept by the borrower with the NBFC-MFI.

What are the charges that a customer is supposed to pay for the loan that he takes from an NBFC-MFI?

A customer needs to know that there are only three components in the pricing of a loan viz. the interest charge, the processing charge and the insurance premium (which includes the administrative charges in respect thereof). An NBFC-MFI cannot levy any charges apart from the three mentioned above

Can an NBFC-MFI charge a differential rate of interest to its customers? If yes, is there any limit imposed by RBI on it?

Yes, an NBFC-MFI can charge a differential rate of interest to its customers but the variance for individual loans between the minimum and maximum interest rate cannot exceed 4 per cent.

What are the processing charges that an NBFC-MFI can levy on its customers?

Processing charges by NBFC-MFIs shall not be more than 1% of gross loan amount. Processing charges need not be included in the margin cap. Further, NBFC-MFIs shall recover only the actual cost of insurance for group, or livestock, life, health.

Can NBFC-MFIs lend funds for personal use/emergencies?

A part (i.e. maximum of 50 per cent) of the aggregate amount of loans may be extended for other purposes such as housing repairs, education, medical and other emergencies. However, aggregate amount of loans given to a borrower for income generation should constitute at least 50 per cent of the total loans from the NBFC-MFI.

Can renovation/home improvement loans of smaller amount (Approx. 50000) be included under qualifying assets?

Home loans generally have mortgage of a dwelling unit. If all conditions as applicable for qualifying assets including collateral free loans and not less than 50% of the loan for income generation purpose are met, these may be treated as qualifying assets.

What is the maximum amount of loan that can be disbursed by MFIs?

NBFC-MFI can disburse loan to a borrower with a rural household annual income not exceeding Rs. 1,25,000 or urban and semi-urban household income not exceeding Rs. 2,00,000 . The limit of total indebtedness of the borrower should not be more than Rs.1,25,000. Education and medical expenses will be excluded while arriving at the total indebtedness of a borrower.

  • Phone 70440-44045
  • E-mail hrmanager@grameenshakti.co.in
  • Address 13/2, Ashutosh Chatterjee Road, Kolkata-700031

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